Average rates for income-related expenses: Exception for § 26 Z 9 EStG is removed

The Federal Minister of Finance has amended the regulation on the establishment of average rates for income-related expenses, thereby expanding the group of employees who can claim flat-rate income-related expenses. The amendment is promulgated in the Federal Law Gazette for the Republic of Austria, Part II, as BGBl. II No. 273/2026 dated September 11, 2026. It is to be applied for the first time in the 2027 assessment or for wage payment periods ending after December 31, 2026.

Legal Basis and Background

The regulation is based on § 17 Para. 6 of the Income Tax Act 1988 (EStG 1988), BGBl. No. 400/1988, most recently amended by the Federal Act BGBl. I No. 62/2026. The regulation being amended is the Regulation of the Federal Minister of Finance on the establishment of average rates for income-related expenses, BGBl. II No. 382/2001, in its version most recently amended by the Regulation BGBl. II No. 500/2021.

The average rates allow employees to deduct income-related expenses as a flat rate without individual proof. Previously, income falling under § 26 No. 9 EStG 1988 was excluded from this.

The Central Change

In § 4 Para. 1 of the regulation, the phrase including punctuation “, except those according to § 26 No. 9 EStG 1988,” is deleted. Consequently, the previously excluded income will now be included in the scope of application of the average rates.

This particularly affects employees with flat-rate income-related expenses who were previously reliant on individual proof due to the exception. By deleting the exception, they can now utilize the simplified flat-rate regulation.

Temporal Scope of Application

The new § 6 Para. 7 regulates the entry into force of the amendment in a differentiated manner:

• For assessed income tax, § 4 Para. 1 in the version of Regulation BGBl. II No. 273/2026 is to be applied for the first time in the 2027 assessment.
• For income tax collected by deduction (wage tax) or income tax determined by assessment, the new regulation applies for the first time to wage payment periods ending after December 31, 2026.

The regulation was officially signed on September 11, 2026, and signed by the Federal Minister of Finance.

Significance for Those Affected

For employees whose income previously fell under § 26 No. 9 EStG 1988, the need to provide individual proof of income-related expenses will cease as of the 2027 assessment year. In the future, they can claim the flat-rate average rates, which simplifies the tax return and, in many cases, is likely to lead to higher deductibility. Employers must take the amended legal situation into account during payroll accounting for wage payment periods from 2027 onwards.

Source: Federal Law Gazette for the Republic of Austria, Part II, No. 273 of September 11, 2026, p. 1 (official reference: BGBl. II No. 273/2026).